The pace of construction in the residential sector seems to have picked up with top seven cities — Delhi-NCR, Mumbai Metropolitan Region (MMR), Bengaluru, Hyderabad, Pune, Chennai and Kolkata — reducing their burden of stuck and delayed houses. As on May 31, 2022, there were around 479,940 units worth over Rs 4.48 trillion that were launched in 2014 or before and remained stuck in various construction stages across these cities. This is down from 517,000 units worth around Rs 4.84 trillion at the end of December 31, 2021.
Data from ANAROCK shows that as many as 36,830 languishing homes were completed in seven cities between January and May 2022, resulting in reduction of stuck and delayed units. The number is further down compared to August 2021, when there were 638,000 units stuck/delayed, meaning 149,000 units have been completed in the nine months to May 2022. In terms of share, NCR and MMR together hold a 77% majority share in the stuck or delayed projects, while the southern metros Bengaluru, Chennai and Hyderabad have just 9%. Pune has a near 9% share, while Kolkata accounts for a minuscule 5% in the overall share.
Prashant Thakur, senior director and head (research), ANAROCK, said, “What is notable is that developers are maintaining pace despite considerable headwinds from increased input costs. The fact that housing demand has remained strong in last two years obviously helps. Several larger developers as well as the SWAMIH fund and NBCC have taken over stuck/delayed inventories and are seeing them to completion.”
With nearly 16,750 units, NCR saw the highest number of stuck units completed — from 257,360 in December 2021 to 240,610 by May 2022-end. Currently, NCR’s cumulative burden of stuck units exceeds Rs 1.81 trillion, down from Rs 1.94 trillion.
MMR comes a distant second with 129,000 stuck/delayed housing stock worth around Rs 1.84 trillion. In December 2021, the region had approximately 134,000 languishing units worth nearly Rs 1.92 trillion. There were 5,300 units completed in this period.